Page 192 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

contingencies insured should be clear and
transparent and of value to the insured.

Prudent underwriting means that the insurer should
cover only those risks that are quantifiable and
manageable and where the premium can be
properly assessed. The cover should be clear ,
well defined and of value to the insured.

ii) All literature relating to the product should be in
simple language and easily understandable to the
common man. As far as possible a similar format
should be followed . All technical terms should be
explained for the benefit of the insured

There should be no effort to mislead the reader to
assume that the product is offering some protection
which it really does not, or does protect subject to
limitations and conditions.

iii) The insurance products should comply with the
requirements of the Protection of Policyholders"

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